WestJet Takes Fee Fight Public with Consumer Notice

WestJet says Canadians are suffering from government and third-party fees that are more than double what Americans and Australians pay.

“You are not the only one scratching your head at why domestic flights in Canada feel bogged down by fees,” the airline says in a statement posted on their website. “Government-imposed or third-party fees* are higher in Canada than in other countries and represent the most significant barrier to competitive growth and affordable air travel.

The Calgary-based airline has been making its case for lower fees for some time, but the statement marks the first time the company has appealed to the public in such a direct way.

“As these fees continue to rise—outpacing inflation—aspirations of accessible air travel remain unattainable for millions of Canadians” WestJet argues.

WestJet says Canadian travellers are required to pay five distinct government fees in Canada, “leaving guests with no choice but to pay a minimum of 75 dollars on every flight before airlines even add the fare. Not only does this strain traveller’s budgets, while they already are facing an affordability crisis, but it stifles low-cost competition within the industry.”

In stark contrast, Australia and the United States third-party fees are less than half the price of Canada and seemingly unbelievable low fares. It also explains why we don’t see many low-cost American-based airlines flying in Canada – entering our market is simply too expensive.”

For airport improvement fees and air traveller security charges, Canadians pay CAD$49, WestJet says (see chart below). Australians pay about AUD$21, while Americans pay only about USD$10.

A closer look at fees

Here’s a comparison of the average government-imposed fees charged on domestic flights in Canada, Australia and the U.S.:

“Despite these costs, Canadian air fares have dropped significantly in the past three decades (partially due to WestJet’s long-standing low-cost mission) while a significantly greater percentage is made up of fees. The following graph indicates that while airfares have decreased by almost 50% since 1995, government-imposed fees have increased by more than 65%."

Average domestic airfares and direct third-party fees from 1995-2024

Comp Bureau Graph FINAL - 1

Between 1995 and 2024, direct third-party fees increased by 65.2% (and from 9.5% to 25.3% of total airfare), WestJet says. Over that same time, airfares decreased by 49.1%.

The need for change

“Current goverrnment-imposed fees prevent millions of Canadians from being able to afford domestic air travel despite the essential nature of this service,” the airline says. “Reducing these fees by just 50% could unlock greater access to air travel, stimulating demand for an additional 12 million one-way domestic flights each year.

“This boost in demand would be enough to support and sustain another Canadian airline comparable to the size of WestJet. With the right adjustments, the skies could become more affordable for millions, fostering greater connectivity and economic opportunity across the country.”

WestJet in May issued a strong call for a freeze on mandatory government-imposed fees and a permanent end to airport rent collection.
The head of IATA earlier this year said government fees are hurting travel and tourism around the world.

*Third-party fees are comprised of direct and indirect fees that are passed on to guests from airport partners and federal regulators. Direct fees imposed on passengers include airport improvement fees (AIFs) and air travellers security charges (ATSC). Fees imposed on airlines that are passed through to travellers include NAV Canada/air traffic control fees, aviation fuel taxes and federal government ground rents, which are passed through in higher airport landing fees and terminal charges.